This article featured in Eurofish Magazine 6 2018.
St. Petersburg, the “Venice of the North”, hosted the second edition of the Global Fishery Forum and Seafood Expo Russia on 13-15 September 2018. The event centered on what to expect from the global fisheries industry and markets in the coming decades.
The forum brought together more than 1 100 business leaders, members of international food and fisheries organizations, specialized ministries, international seafood companies and fisheries representatives from 42 countries, including Canada, China, Denmark, the Faroe Islands, Germany, Iceland, Italy, Japan, Morocco, Norway, and Turkey.
Asia strongly represented at aquaculture session
The session “Aquaculture production and development forecast by 2050” focused on the discussions of the state of the global aquaculture sector, its future growth, and environmental control and safety. Moderated by Ekaterina Tribilustova, Eurofish International Organisation, the session hosted experts from specialized agencies, ministries, sectorial organisations and unions from 8 countries, including the Federal Agency for Fisheries of Russia, the Union of Sturgeon Breeders of Russia, China’s Union of Seafood Processing Enterprises, Ministry of Agriculture and Forestry of Turkey, the Ministry of Agricultural Development of Islamic Republic of Iran and Shilat Organization for Fisheries and Fish Farming of Iran, and the National Institute of Research and Development of fisheries sector in the Republic of Korea.
At present, the aquaculture industry produces over 45% of fish and seafood products consumed globally, while the share of fish products is 53%, according to the FAO. At the same time, the global population has never consumed as much fish as now. Since 1961, the growth rates of fish consumption in the world have been two times higher than the population growth, while the production growth rates have been declining. It is expected that even growing at a slower rate the aquaculture sector can eliminate the gap between growing demand and declining resources playing a major role in providing the world population with the proteins they need. The aquaculture sector in particular has an especially important role in improving food nutrition and fighting hunger.
One of every two fish sold on the world’s markets already comes from aquaculture and this share will continue to grow in the coming years. New farming projects are added almost every day. Not all of them succeed at the first attempt for aquaculture is very susceptible to disturbances and damages. So far, however, only very few companies are insured against losses. Too expensive, too complicated, or simply not interested?
Insurance companies don’t have a very good image. They are sometimes scorned for lending out umbrellas but immediately reclaiming them when the first drops of rain fall. Nearly everyone can relate examples of how skilfully insurance companies will evade their obligations when things get really tight for the insured party. Nevertheless, interest in insuring aquaculture projects has never been greater than it is today. The gap between this increase in demand and the available offers of aquaculture insurance is getting wider and wider. More than ten years ago FAO experts estimated the number of insurance policies taken out at around 8,000, and even if this number is likely to have increased by a few thousand since then it is still negligible compared to the total number of large and small aquaculture companies which amounts to several hundred thousand! It is striking that a large share of existing insurance policies is concluded in western industrialised countries while other regions, such as large parts of Asia, which accounts for around 80 per cent of global aquaculture production, are much less represented. What are the causes of this unsatisfactory situation? Do insurance companies simply shy away from the eff ort and cost of auditing farms or, in general, from the risks of fish farming? Or is it because fish farmers fear the costs of insurance and underestimate the benefits of insurance cover? Another noticeable feature of aquaculture insurance is that many insurers only offer products for a few species and production methods: mainly for salmon and shrimps. It is much more difficult to find useful offers for new species and innovative methods. This is understandable, because insurers need a broad database and industry-specific standards in order to realistically assess the risks of aquaculture production and calculate the resulting premiums. What has long been routine in car insurance, because there are detailed time series on the type, frequency and severity of possible damage that can even be grouped regionally and for specific car types, is still very difficult in aquaculture. The diversity of species and methods can hardly be forced into uniform, universally applicable standards.